Financial Daily from THE HINDU group of publications
Saturday, Aug 24, 2002
Financial Daily from THE HINDU group of publications Saturday, Aug 24, 2002 |
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Marketing
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Retailing Medicine Shoppe plans 500 outlets Our Bureau
KOLKATA, Aug. 23 MEDICINE Shoppe India, a master franchisee of Medicine Shoppe of the US, hopes to have 500 outlets — on sub-franchisee basis — by 2006. At present, there are 35 Medicine Shoppe outlets in the country. Stating this at a news conference here recently, Mr R.C. Gandhi, Director of Medicine Shoppe India, said Medicine Shoppe of the US was a subsidiary of Cardinal Health Inc. and has 1,500 outlets spread across 10 countries globally. Besides dispensing over-the-counter products, these outlets epitomise the `family pharmacy' philosophy. Mr Gandhi said the setting up of each Medicine Shoppe outlet would entail a capital investment of between Rs 8.5 lakh and Rs 10 lakh. Medicine Shoppe India would provide marketing, inventory management and systems support to each of these outlets. The sub-franchisees, in turn, would have to pay a royalty of three per cent on gross sales to Medicine Shoppe India. The master franchisee for India, in turn, would have to pay a royalty of two per cent on gross sales to Medicine Shoppe of the US. Customers of Medicine Shoppe outlets in India would be entitled to free accident insurance and household insurance coverage depending upon the amount of purchases made. Besides, each outlet would have a qualified pharmacist even as health information terminals would be provided to help disseminate information on health-related matters. According to Mr Gandhi, the Indian healthcare industry was valued at Rs 83,000 crore at present and is stated to be growing at a compounded annual rate of 18 per cent. Of this, the retail pharmacy segment accounts for about Rs 30,000 crore. This is expected to exceed Rs 65,000 crore by 2006. As such, this segment offered great potential for business growth and outlets of Medicine Shoppe would take a chunk of the pie.
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